WeWork India Sets Sights on $2 Billion IPO, Targeting Early 2025 Listing
WeWork India, the joint venture between Bengaluru-based property firm Embassy Group and American co-working giant WeWork, is reportedly preparing for a major market debut. The company is exploring an initial public offering (IPO) with a target valuation of a hefty $2 billion to $2.5 billion, as reported by The Arc. This ambitious move reflects WeWork India’s confidence in its growth trajectory and its desire to capitalize on the burgeoning Indian co-working market.
A Big Valuation Jump and Funding Plans
WeWork India is aiming to raise between $350 million and $475 million through the IPO. This figure represents a significant increase from the company’s last funding round in 2020, where it was valued at under $400 million. The IPO will involve both a secondary stake sale by existing shareholders, including WeWork US, and a primary capital raise to further expand its operations.
Timing and Key Players
JM Financial has been appointed as the book-running lead manager for the IPO. WeWork India plans to file the necessary documents by the end of this year and is targeting a listing by the first half of 2025. The Embassy Group, a key partner in the venture, is also looking to enhance its liquidity through the IPO. This move comes at a crucial time for WeWork, as the company recently emerged from bankruptcy with an equity valuation of $750 million after Indian-origin tech entrepreneur Anant Yardi took ownership.
Challenges and Previous Attempts
The planned IPO is not without its challenges. Earlier this year, The Embassy Group faced obstacles in acquiring a 27% stake in WeWork India from WeWork Global. To finance this acquisition, WeWork India had attempted to raise $150 million from a consortium of investors, including Enam Group’s family office, venture fund A91 Partners, and CaratLane founder Mithun Sacheti. However, the transaction ultimately did not materialize, according to The Arc.
A Look at the Indian Market
The proposed WeWork India IPO comes shortly after the underwhelming Indian market debut of South Korean carmaker Hyundai Motor Company. The company’s Indian unit is currently trading at a slight discount following the country’s largest IPO. This situation highlights the challenges and uncertainties that companies face when entering the Indian market, even with strong global backing.